[Today's Guide]
○ National sports lottery work conference held, Internet-based lottery sales to resume
○ Officials listen to opinions on development of Yangtze River Economic Belt, China launches experiments for 5G development
○ Boamax Technologies to issue shares with premium through private placement, Jinke Peroxides to buy mobile game firm
○ Wenshan Electric Power to invest SPIC Yunnan International Power, Eurasia Group and others see increase in shareholding by shareholders
[SSN Focus]
○ National sports lottery work conference held, Internet-based lottery sales to resume
------
Officials from the General Administration of Sport (GAS) indicated at the work conference on national sports lottery held on Jan. 7 that it would actively promote the preparation for pilot Internet-based sales and further improve various regulation systems and working processes. The 13th Five-year Plan on sports lottery has been approved by the Ministry of Finance and was discussed at the conference. It requires striving to achieve breakthroughs in mobile phone instant lotteries and Internet-based lottery sales.
Comment: It means that significant breakthroughs will be made in the coverage of the sports lottery market this year. China will host various important sports events in the following years. Diversified lotteries represented by mobile phone instant lotteries will be responsible for fiscal revenue and the popularization of sports. Insiders indicate that considering the large probability in opening the quizzes lotteries on the Chinese Super League, the demand for lotteries is expected to be huge. The GAS may apply issuing more licenses. Beijing Zhongcaihui Network Technology Co., Ltd., a business partner of China United Travel Co., Ltd. (600358.SH), www.okooo.com under People.cn Co., Ltd. (603000.SH) and cailele.com under Hongbo Co., Ltd. (002229.SZ) are highly expected to be licensed.
[SSN Selection]
○ Shanghai and Shenzhen stock exchanges released formatting guidelines, requiring controlling shareholders and shareholders with over 5 percent shares making disclosures 15 trading days in advance for shareholding reducing through call auctions.
○ A special commentator of chinamoney.com indicated in an article that the exchange rates of RMB against a basket of currencies generally remain stable. China will further improve the market orientation and benchmark of the central parity rate.
○ The Ministry of Land and Resources indicated that it will speed up in de-capacity with coal and iron industries as focuses and vitalize inventory land of enterprises.
○ China Aerospace Science ＆ Industry Corp. and its subsidiaries committed that they would not reduce the shareholding in listed companies in six months. China Minmetals Corporation indicated that it would firmly hold the shares of all listed companies under it.
○ Shanghai Metersbonwe Fashion ＆ Accessories Co., Ltd. (002269.SZ) confirmed that president Zhou Chengjian and the board secretary of the company are out of touch. It is reported that Zhou may be involved in the case of Xu Xiang , known as "hedge fund brother No. 1" for his knack of timing swings in stocks and for his top performance among money managers in China.
TOP
[Industry Information]
○ Officials listen to opinions on development of Yangtze River Economic Belt, eco-environmental restoration to enjoy priority
------
Chinese President Xi Jinping listened to opinions and advices of relevant provinces and municipalities and the State Council on promoting the development of the Yangtze River Economic Belt at the symposium on facilitating the development of the belt convened on Jan. 5 in Chongqing. Xi pointed out that the restoration of the eco-environment of the Yangtze River shall be given overwhelming priority currently and in the fairly long term. It should focus on wide protection rather than large-scale development. The implementation of significant eco-environmental restoration projects shall enjoy priority in promoting the development of the Yangtze River Economic Belt.
Comment: Institutes believe that the Yangtze basin owns the iron and steel, chemical engineering, automobile, textile, power and other industrial bases and corridors in China. It enjoys great potential for comprehensive development and will benefit the shipping, port and infrastructure enterprises along it. In addition, the conference gave overwhelming priority to the eco-environment of the Yangtze River. Listed companies engaged in ecological restoration and clean energy are expected to obtain higher market shares.
○ China launches experiments for 5G development
------
The Ministry of Industry and Information Technology (MIIT) on Jan. 7 announced at the kick-off meeting for the research and development of 5G technology that China would strive to commercialize 5G technology by 2020. According to the overall plan, China's 5G experiments will take two steps: first step is experiments for 5G technology research and development from 2016 to 2018, led by China Academy of Telecommunication Research, along with operation enterprises, equipment enterprises and scientific research institutions; second step will last from 2018 to 2020, led by China's communication operations, along with equipment enterprises and scientific research institutions.
Comment: Institutes believe that China has prominent advantages in self-developed TD technology, which is expected to become international 5G standards. Chinese communication equipment providers are also expected to win more overseas market shares. Broadband operators and virtual operators with strong operation capability and wireless device and optical network companies with technology accumulation and international market competitiveness are likely to benefit from it.
TOP
[Announcement Interpretation]
○ Boamax Technologies to issue shares with over 40 pct premium through private placement to develop environmental protection
------
Suzhou Boamax Technologies Group Co., Ltd. (002514.SZ) plans to acquire 100 percent equities of Shenzhen Jiechi Technology Co., Ltd. with 1.06 billion yuan by issuing shares at 21.21 yuan per share through private placement and in cash. The company will also raise 582 million yuan supporting funds through private placement. Jiechi Technology is mainly engaged in the design, production, installation, commissioning and operation of the etching waste recycling system on printed circuit board. The counterpart promised that the net profit after extraordinary items of the underlying company will be no less than 40 million yuan, 70 million yuan, 100 million yuan and 130 million yuan from 2015 to 2018. The company's stock price closed at 14.8 yuan, over 43 percent lower than the offering price of the private placement.
○ Jinke Peroxides to buy mobile game firm with RMB 2.9 bln
------
Zhejiang Jinke Peroxides Co., Ltd. (300459.SZ) plans to acquire 100 percent equities of Hangzhou Zhexin Information Technology Co., Ltd. with 2.9 billion yuan, among which 870 million yuan will be paid in cash and the remaining will be raised by issuing 128 million shares at 15.86 yuan per share through private placement The company will also raise 2.1 billion yuan supporting funds by issuing shares at 15.86 yuan per share through private placement.
Zhexin Information Technology is a mobile Internet company that is mainly engaged in the release and operation of mobile games relying on big data analysis. The counterpart promised that the net profit of the company will be no less than 170 million yuan, 230 million yuan and 300 million yuan from 2016 to 2018.
TOP
○ Wenshan Electric Power to invest SPIC Yunnan International Power
------
Yunnan Wenshan Electric Power Co., Ltd. (600995.SH) plans to acquire 100 percent equities of SPIC Yunnan International Power Investment Co., Ltd. held by its controlling shareholder Yunnan Grid Company with 1,015 million yuan, among which 632 million yuan will be paid in cash and the remaining will be raised by issuing 50.66 million shares at 7.55 yuan per share through private placement. The company will also raise 837 million yuan supporting funds by issuing shares at no less than 7.55 yuan per share through private placement. SPIC Yunnan International Power Investment is mainly engaged in cross-border power trade and overseas power project EPC (engineer, procure and construction). It has provided electricity for Vietnam, Laos and Myanmar.
○ Eurasia Group and others see increase in shareholding by shareholders
------
Controlling shareholder of Chang Chun Eurasia Group Co., Ltd. (600697.SH) from Jan. 4 to Jan. 7 increased holding of 1,350,000 shares in the company, accounting for 0.85 percent of its entire equity. Li Renchao, actual controller of China Western Power Industrial Co., Ltd. (002630.SZ) from Jan. 6 to Jan. 7 increased holding 3,260,000 shares of the company, representing 0.44 percent of its entire equity. Zhejiang Guangtian Riyue Company Limited, controlling shareholder of Ningbo Construction Co., Ltd. (601789.SH) on Jan. 7 increased holding of 1,020,000 shares of the company, equivalent to 0.21 percent of the company's entire equity. Fujian SBS Group, controlling shareholder of Fujian SBS Zipper Science ＆ Technology Co., Ltd. (002098.SZ), from Jan.4 to Jan.5 increased holding of 660,000 shares in the company. Lou Ye, director of Shanghai DragonNet Technology Co., Ltd. (300245.SZ) on Jan. 6 bought 210,000 shares of the company, and after increase shareholding, Lou's shareholding ratio reached 5 percent.
Besides, Gu Guoping, director of Guangxi Future Technology Co., Ltd. (600556.SH), plans to increase shareholding of the company to no less than 1 percent of its total share capital within 3 months.
[Financial Reports Express]
○ Zhongyuan Union Cell＆gene Engineering warns of profit in annual report
------
Zhongyuan Union Cell＆gene Engineering Corp., Ltd. (600645.SH) warns that its net profits will increase 466 percent year on year in the annual report, which is primarily attributable to business growth and combining financial statements with Shanghai Zhicheng biological technology Co., Ltd. Guangdong Wen's Foodstuffs Group Co., ltd. (300498.SH) predicted that its net profits will increase 110 to 135 percent in the annual report, primarily due to price hike of pork and increase of pig and poultry slaughter.
○Several companies increases forecast growth of annual results
------
BYD Company Limited (002594.SZ) previously estimated that its annual result to grow 435 to 481 percent. And now the company adjust it to 518 to 557 percent, as a result of rapid growth of new energy vehicle in the fourth quarter. Shanghai RAAS Blood Products Co., Ltd. (002252.SZ) originally predicted that its annual results will increase from 155 to 175 percent, and has increased the estimation to 180 to 190 percent, primarily due to the growth of revenue of the main businesses.
[Trading Alarms]
○ Part of structure funds triggered discount, B unit likely to suffer heavy losses
------
Data sourced on Jan. 7 evening indicated that net value of B grade structure fund, B unit of electronic grade B structure funds of some securities companies have dropped below 0.25 yuan, and triggered discount conditions. While the trading prices on the secondary remain above 0.3 yuan. Even if stock index rebound on Jan. 8, holders of B unit will suffer huge losses. Net value of Convertible Bond B, ChiNext B and CSI 300B have also move close to the discount threshold. The risks cannot be ignored.
TOP
○ National sports lottery work conference held, Internet-based lottery sales to resume
○ Officials listen to opinions on development of Yangtze River Economic Belt, China launches experiments for 5G development
○ Boamax Technologies to issue shares with premium through private placement, Jinke Peroxides to buy mobile game firm
○ Wenshan Electric Power to invest SPIC Yunnan International Power, Eurasia Group and others see increase in shareholding by shareholders
[SSN Focus]
○ National sports lottery work conference held, Internet-based lottery sales to resume
------
Officials from the General Administration of Sport (GAS) indicated at the work conference on national sports lottery held on Jan. 7 that it would actively promote the preparation for pilot Internet-based sales and further improve various regulation systems and working processes. The 13th Five-year Plan on sports lottery has been approved by the Ministry of Finance and was discussed at the conference. It requires striving to achieve breakthroughs in mobile phone instant lotteries and Internet-based lottery sales.
Comment: It means that significant breakthroughs will be made in the coverage of the sports lottery market this year. China will host various important sports events in the following years. Diversified lotteries represented by mobile phone instant lotteries will be responsible for fiscal revenue and the popularization of sports. Insiders indicate that considering the large probability in opening the quizzes lotteries on the Chinese Super League, the demand for lotteries is expected to be huge. The GAS may apply issuing more licenses. Beijing Zhongcaihui Network Technology Co., Ltd., a business partner of China United Travel Co., Ltd. (600358.SH), www.okooo.com under People.cn Co., Ltd. (603000.SH) and cailele.com under Hongbo Co., Ltd. (002229.SZ) are highly expected to be licensed.
[SSN Selection]
○ Shanghai and Shenzhen stock exchanges released formatting guidelines, requiring controlling shareholders and shareholders with over 5 percent shares making disclosures 15 trading days in advance for shareholding reducing through call auctions.
○ A special commentator of chinamoney.com indicated in an article that the exchange rates of RMB against a basket of currencies generally remain stable. China will further improve the market orientation and benchmark of the central parity rate.
○ The Ministry of Land and Resources indicated that it will speed up in de-capacity with coal and iron industries as focuses and vitalize inventory land of enterprises.
○ China Aerospace Science ＆ Industry Corp. and its subsidiaries committed that they would not reduce the shareholding in listed companies in six months. China Minmetals Corporation indicated that it would firmly hold the shares of all listed companies under it.
○ Shanghai Metersbonwe Fashion ＆ Accessories Co., Ltd. (002269.SZ) confirmed that president Zhou Chengjian and the board secretary of the company are out of touch. It is reported that Zhou may be involved in the case of Xu Xiang , known as "hedge fund brother No. 1" for his knack of timing swings in stocks and for his top performance among money managers in China.
TOP
[Industry Information]
○ Officials listen to opinions on development of Yangtze River Economic Belt, eco-environmental restoration to enjoy priority
------
Chinese President Xi Jinping listened to opinions and advices of relevant provinces and municipalities and the State Council on promoting the development of the Yangtze River Economic Belt at the symposium on facilitating the development of the belt convened on Jan. 5 in Chongqing. Xi pointed out that the restoration of the eco-environment of the Yangtze River shall be given overwhelming priority currently and in the fairly long term. It should focus on wide protection rather than large-scale development. The implementation of significant eco-environmental restoration projects shall enjoy priority in promoting the development of the Yangtze River Economic Belt.
Comment: Institutes believe that the Yangtze basin owns the iron and steel, chemical engineering, automobile, textile, power and other industrial bases and corridors in China. It enjoys great potential for comprehensive development and will benefit the shipping, port and infrastructure enterprises along it. In addition, the conference gave overwhelming priority to the eco-environment of the Yangtze River. Listed companies engaged in ecological restoration and clean energy are expected to obtain higher market shares.
○ China launches experiments for 5G development
------
The Ministry of Industry and Information Technology (MIIT) on Jan. 7 announced at the kick-off meeting for the research and development of 5G technology that China would strive to commercialize 5G technology by 2020. According to the overall plan, China's 5G experiments will take two steps: first step is experiments for 5G technology research and development from 2016 to 2018, led by China Academy of Telecommunication Research, along with operation enterprises, equipment enterprises and scientific research institutions; second step will last from 2018 to 2020, led by China's communication operations, along with equipment enterprises and scientific research institutions.
Comment: Institutes believe that China has prominent advantages in self-developed TD technology, which is expected to become international 5G standards. Chinese communication equipment providers are also expected to win more overseas market shares. Broadband operators and virtual operators with strong operation capability and wireless device and optical network companies with technology accumulation and international market competitiveness are likely to benefit from it.
TOP
[Announcement Interpretation]
○ Boamax Technologies to issue shares with over 40 pct premium through private placement to develop environmental protection
------
Suzhou Boamax Technologies Group Co., Ltd. (002514.SZ) plans to acquire 100 percent equities of Shenzhen Jiechi Technology Co., Ltd. with 1.06 billion yuan by issuing shares at 21.21 yuan per share through private placement and in cash. The company will also raise 582 million yuan supporting funds through private placement. Jiechi Technology is mainly engaged in the design, production, installation, commissioning and operation of the etching waste recycling system on printed circuit board. The counterpart promised that the net profit after extraordinary items of the underlying company will be no less than 40 million yuan, 70 million yuan, 100 million yuan and 130 million yuan from 2015 to 2018. The company's stock price closed at 14.8 yuan, over 43 percent lower than the offering price of the private placement.
○ Jinke Peroxides to buy mobile game firm with RMB 2.9 bln
------
Zhejiang Jinke Peroxides Co., Ltd. (300459.SZ) plans to acquire 100 percent equities of Hangzhou Zhexin Information Technology Co., Ltd. with 2.9 billion yuan, among which 870 million yuan will be paid in cash and the remaining will be raised by issuing 128 million shares at 15.86 yuan per share through private placement The company will also raise 2.1 billion yuan supporting funds by issuing shares at 15.86 yuan per share through private placement.
Zhexin Information Technology is a mobile Internet company that is mainly engaged in the release and operation of mobile games relying on big data analysis. The counterpart promised that the net profit of the company will be no less than 170 million yuan, 230 million yuan and 300 million yuan from 2016 to 2018.
TOP
○ Wenshan Electric Power to invest SPIC Yunnan International Power
------
Yunnan Wenshan Electric Power Co., Ltd. (600995.SH) plans to acquire 100 percent equities of SPIC Yunnan International Power Investment Co., Ltd. held by its controlling shareholder Yunnan Grid Company with 1,015 million yuan, among which 632 million yuan will be paid in cash and the remaining will be raised by issuing 50.66 million shares at 7.55 yuan per share through private placement. The company will also raise 837 million yuan supporting funds by issuing shares at no less than 7.55 yuan per share through private placement. SPIC Yunnan International Power Investment is mainly engaged in cross-border power trade and overseas power project EPC (engineer, procure and construction). It has provided electricity for Vietnam, Laos and Myanmar.
○ Eurasia Group and others see increase in shareholding by shareholders
------
Controlling shareholder of Chang Chun Eurasia Group Co., Ltd. (600697.SH) from Jan. 4 to Jan. 7 increased holding of 1,350,000 shares in the company, accounting for 0.85 percent of its entire equity. Li Renchao, actual controller of China Western Power Industrial Co., Ltd. (002630.SZ) from Jan. 6 to Jan. 7 increased holding 3,260,000 shares of the company, representing 0.44 percent of its entire equity. Zhejiang Guangtian Riyue Company Limited, controlling shareholder of Ningbo Construction Co., Ltd. (601789.SH) on Jan. 7 increased holding of 1,020,000 shares of the company, equivalent to 0.21 percent of the company's entire equity. Fujian SBS Group, controlling shareholder of Fujian SBS Zipper Science ＆ Technology Co., Ltd. (002098.SZ), from Jan.4 to Jan.5 increased holding of 660,000 shares in the company. Lou Ye, director of Shanghai DragonNet Technology Co., Ltd. (300245.SZ) on Jan. 6 bought 210,000 shares of the company, and after increase shareholding, Lou's shareholding ratio reached 5 percent.
Besides, Gu Guoping, director of Guangxi Future Technology Co., Ltd. (600556.SH), plans to increase shareholding of the company to no less than 1 percent of its total share capital within 3 months.
[Financial Reports Express]
○ Zhongyuan Union Cell＆gene Engineering warns of profit in annual report
------
Zhongyuan Union Cell＆gene Engineering Corp., Ltd. (600645.SH) warns that its net profits will increase 466 percent year on year in the annual report, which is primarily attributable to business growth and combining financial statements with Shanghai Zhicheng biological technology Co., Ltd. Guangdong Wen's Foodstuffs Group Co., ltd. (300498.SH) predicted that its net profits will increase 110 to 135 percent in the annual report, primarily due to price hike of pork and increase of pig and poultry slaughter.
○Several companies increases forecast growth of annual results
------
BYD Company Limited (002594.SZ) previously estimated that its annual result to grow 435 to 481 percent. And now the company adjust it to 518 to 557 percent, as a result of rapid growth of new energy vehicle in the fourth quarter. Shanghai RAAS Blood Products Co., Ltd. (002252.SZ) originally predicted that its annual results will increase from 155 to 175 percent, and has increased the estimation to 180 to 190 percent, primarily due to the growth of revenue of the main businesses.
[Trading Alarms]
○ Part of structure funds triggered discount, B unit likely to suffer heavy losses
------
Data sourced on Jan. 7 evening indicated that net value of B grade structure fund, B unit of electronic grade B structure funds of some securities companies have dropped below 0.25 yuan, and triggered discount conditions. While the trading prices on the secondary remain above 0.3 yuan. Even if stock index rebound on Jan. 8, holders of B unit will suffer huge losses. Net value of Convertible Bond B, ChiNext B and CSI 300B have also move close to the discount threshold. The risks cannot be ignored.
TOP
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